Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2018, a parent company sold land to the subsidiary for $650,000. The land originally cost the parent $520,000 when it was purchased on January 1, 2009. The parent company uses the equity method to account for its pre-consolidation investment in the subsidiary. Related to the transferred land, which of the following items is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2019? A. The consolidation entries will include a $26,000 debit to "Equipment (gross)".
B. The consolidation entries will include a $26,000 credit to "Loss on Sale of Equipment".
C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment".
D. The consolidation entries will include a $26,000 credit to "Accumulated depreciatio".

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?